Fitch affirms Kernel Holding

Fitch Ratings said it affirmed Kernel Holding SA's long-term issuer default rating at B+ with stable outlook.

The ratings incorporate a leverage spike and weak operating results expected for financial year ended June due to a challenging operating environment, the agency said.

However, Fitch said it also expects a rebound in profits and an improvement in leverage, due to Kernel's expansion plans and strong support from the group relationship banks.

Kernel is also at an advanced stage of obtaining further funding from the European Investment Bank to cover its fiscal year 2019 capex.

The agency said it sees limited execution risk in Kernel's expansion plans.

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